Here’s an interesting paradox to chew over – more UK adults than ever before are concerned about their, yet fewer than ever before are doing anything about it.
Why? Well, most experts agree it’s a case of the ‘ignorance is bliss’ card being followed until the eleventh hour, by which time it’s often too late to do anything about it.
Here’s a quick rundown of ten simple, yet effective tips on how to make the most of your own:
1 – Check Expenses.
First of all, it’s a good idea to sit down and map out your expenses both now and after you retire. A great many things change and expenses both disappear and creep into the equation, so now’s the time to start thinking about what your money will be required for/used on.
2 – Prepare a List.
Instead of just having a bunch of numbers and perceived figures floating around your head, take the time to make a list of all of your financial assets, sources of income and anything that will add to your pension pot.
3 – Compare Points One and Two.
After ticking the above boxes, these two lists should be compared and evaluated side by side in order to gain a realistic and accurate perspective of how your pension is looking as of right now.
4 – Consider.
If you can afford to bear the risks, it’s worth speaking to an independent financial adviser about the variousoptions available to you. No is ever 100% risk-free, though risks can be minimised with the right advice and guidance.
Today, more Brits than ever before are deferring theirin order to pump as much money as possible into their pension pots. This isn’t always an option and certainly isn’t desirable for some – others however relish the opportunity to continue working.
6 – Consider an.
Once again, there are always risks involved when buying an annuity as yields can technically fall at any time. However, a good financial adviser will be able to steer you in the right direction with regards to rate movements at the time.
7 – Move Assets Into Cash.
In the run-up to retirement, it’s of crucial importance to move assets into cash or near cash. By doing so, you effectively protect what’s yours from any potential falls that may occur in the final stages before your retirement officially begins.
8 – Be Realistic and Practical.
Tempting as it may be to blow that lump sum payment on the luxury purchase of a lifetime, it’s important to remain realistic and practical. While it may be less exciting in the immediate moment, it’s better to live a comfortable and happy retirement long-term than to splurge in the early years and struggle later on.
9 – Plan (Far) Ahead.
Don’t overlook the fact that when compared to even a few short decades ago, people in the UK are in general living longer than ever before. And while this is nothing but a fantastic thing for all of us, it does mean that those pension funds also have to be stretched further than ever before.
Even though our activities and expenditure decrease with age, income will still need to cover the cost of living longer.
10 – Pay Off Debts.
Last but not least, if there is any way of realistically making it happen, it is in your best interests to ensure you enter your retirement years with as little debt as possible, ideally no outstanding debts at all.